Life Insurance Needs Calculator

Calculate the right amount of life insurance based on income, debts, dependents, and future obligations.

Free • Accurate • Instant Results

Life Insurance Needs Inputs

Annual Income to Replace

Years of Income Replacement

Total Debts & Obligations

Recommended Coverage

🛡️

$900,000

Income Replacement

💵

$750,000

Debts & Obligations

🏠

$150,000

Annual Income

💰

$75,000

🤖

AI Insights

Personalized analysis based on your inputs

💡

DIME Method

This estimate uses the income-replacement approach. Also consider Debt, Income, Mortgage, and Education (DIME) for a comprehensive figure. Rule of thumb: 10-15x annual income ($750,000-$1,125,000).

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Formula Used

Life Insurance Need

Coverage = (Annual Income × Years) + Debts

Variables

Years= Years of income your family needs replaced

Example

$75,000 × 10 years + $150,000 debts = $900,000 recommended coverage

Frequently Asked Questions

Term life is cheaper and covers a fixed period (e.g., 20 years) — ideal for income replacement needs. Whole life is permanent with a cash value component but costs significantly more.

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Disclaimer: This calculator is for informational and educational purposes only. Results are estimates based on inputs you provide. They are not financial, tax, investment, or legal advice. Consult a qualified financial professional before making financial decisions. Actual results may vary based on market conditions, tax laws, and individual circumstances.